Over 5,000 apply for loans under flagship scheme in Mizoram: Minister

Aizawl, Mar 6 (PTI) More than 5,000 people have applied for loans under the Mizoram government's flagship 'Bana Kaih' (hanholding) scheme, state commerce and industry minister F Rodingliana informed the Assembly on Friday.

In a written reply to questions from Congress member C Ngunglianchunga, the minister said 5,093 people have submitted applications to avail loans under the flagship scheme, and 176 have been approved for credit to date.

He said partner banks have so far disbursed loans amounting to Rs 6.84 crore to 91 beneficiaries for different projects or trades.

The Bana Kaih scheme was launched by Chief Minister Lalduhoma in September 2024 to provide financial assistance and support to entrepreneurs and farmers (progress partners) through a series of targeted programmes designed to promote economic growth and self-sufficiency.

One of the key components of the scheme is handholding of beneficiaries, under which the government provides financial support and facilitates loans of up to Rs 50 lakh through partner banks.

The government acts as a guarantor for these project loans under existing national credit guarantee schemes, the minister said.

Beneficiaries who repay their loans on time will also be provided interest subvention of up to 100 per cent, he added.

The scheme also includes the Chief Minister’s Special Category Scheme, which provides grant-in-aid of up to Rs 1 lakh for beneficiaries who are not in a position to avail loans but have viable livelihood projects.

Officials said the quantum of financial assistance has been reduced to Rs 50,000 to enable coverage of more beneficiaries.

More than 2,200 beneficiaries have been provided financial assistance under phase-I of the chief minister’s special package, they said.

Another important component of the handholding scheme is market support.

As part of this initiative, the government has introduced a minimum support price (MSP) for locally produced five key crops - ginger, turmeric, Mizo chilli, broomsticks and unhusked paddy.

The government has allocated Rs 350 crore for the implementation of the flagship scheme in the 2026-27 fiscal, out of which Rs 150 crore was specifically earmarked for the procurement of the five key crops to augment the livelihoods of local farmers. PTI CORR MNB